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SBF shifts all criminal liability to former FTX legal advisor, various legal professionals comment: This move is clever.

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SBF shifts all criminal liability to former FTX legal advisor, various legal professionals comment: This move is clever.

SBF's legal representative pointed out that the criminal charges initially stemmed from the advice of a former legal advisor to FTX, rather than SBF's intention. Many legal professionals view this as a favorable defense strategy for SBF, but there are also concerns.

SBF's Latest Strategy: Blame Former FTX Legal Advisor

SBF's attorneys wrote to FTX case presiding judge Lewis Kaplan, claiming that during SBF's tenure, they followed several recommendations from the Fenwick & West law firm, which included:

  1. Creation of FTX user agreements and terms of service

  2. Providing loans to FTX and Alameda executives

  3. Drafting agreements between FTX and Alameda, including the payment agency agreement

  4. FTX's data policies, including regular automatic data deletion and the communication software used

  5. Organization and merger of trading institution North Dimensio; funds transfer between Silvergate Bank, North Dimension, and FTX

Note: The restructuring team's second-quarter report indicated that North Dimension was packaged as a crypto trading institution, but was actually an empty shell company.

Legal Experts' Views: SBF's Move is a Double-Edged Sword

CoinDesk interviewed lawyer Ira Lee Sorkin, who provided advice to the mastermind behind the largest Ponzi scheme in history, Bernard Madoff.

He believes this is a common defense strategy, but there are several possibilities:

  1. Positive for SBF: Prosecutors will be unable to prove that SBF intended fraud.

  2. Negative for SBF: Former FTX lawyers may be called as witnesses, introducing uncertainty.

  3. Negative for SBF: SBF appears unable to access key documents, as FTX's restructuring team has the authority to decide whether to disclose them.

Criminal defense lawyer Joseph Tully of Tully & Weiss shared a similar view:

He cannot deny the actual criminal conduct, but by using "following advice" as a defense, he can deny the "criminal intent" required for this case, which would result in all charges against SBF failing. The only issue is that this means he is waiving attorney-client privilege, allowing prosecutors to review all content discussed between SBF and his former lawyers.

SBF Granted In-Person Meetings with Lawyers in Detention

SBF had previously emphasized the importance of in-person meetings with lawyers through legal representatives, claiming it would impact his October trial, but the request for "five days a week meetings for one week" was ultimately granted for one day.

According to legal documents from August 23rd, FTX case presiding judge Lewis Kaplan has agreed to allow SBF to continue meeting with lawyers in detention, but SBF must notify the prosecutor and the U.S. Marshals Service 48 hours in advance.

SBF's criminal trial is scheduled for October and March next year, and he has refused to plead guilty to all charges.

Recap: SBF Maintains Innocence in Criminal Trial, Lawyer Claims He Survives on Bread and Water in Detention